Gas flaring drops to 7.16% as Nigeria hits record production in July

By Olakunle Oke

Nigeria has reached a major milestone in its energy sector as gas flaring dropped to 7.16 per cent in July 2025, even as daily production climbed to 7.59 billion standard cubic feet per day (BSCFD).

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the figures in a statement on Saturday, describing the performance as a decisive step towards achieving the country’s 2030 zero-flare ambition.

“The simultaneous growth in output and reduction in flaring reflects the Commission’s resolve to raise production while advancing its 2030 zero-flare commitment,” the NUPRC stated.

According to the regulator, the gas industry has sustained steady expansion over the last three years. Average daily output in July 2025 stood at 7.59 BSCFD, representing an 8.58 per cent increase from the 6.99 BSCFD recorded in 2024. This also marked a 9.84 per cent rise compared to the 6.91 BSCFD posted in July 2023, underlining consistent upward momentum in production levels.

Despite the surge in output, gas flaring continued its downward trajectory, falling to 7.16 per cent in July 2025 compared to 7.55 per cent in 2024 and 7.38 per cent in the same month of 2023.

The Commission credited this decline to deliberate interventions, including the Nigerian Gas Flare Commercialisation Programme (NGFCP), the Decarbonisation and Sustainability Blueprint, Carbon Capture and Storage (CCS), and the Upstream Petroleum Decarbonisation Template (UPDT), all aimed at eliminating routine flaring by 2030.

Performance under the Domestic Gas Delivery Obligation (DGDO) framework improved as well, with July delivery standing at 72.5 per cent, higher than June’s 71.8 per cent. DGDO rates earlier in 2025 were recorded at 72.2 per cent in January, 73.5 per cent in February, 70.8 per cent in March, 73.7 per cent in April, and 73.0 per cent in May.

Breakdown of production by contract type showed that Marginal Sole Risk producers contributed 63 per cent of gas volumes, Production Sharing Contracts (PSCs) accounted for 24 per cent, Joint Ventures (JVs) delivered 10 per cent, while Sole Risk operators provided 3 per cent.

Data on utilisation revealed that 35.88 per cent of output was allocated for export, 27.82 per cent supplied the domestic market, while 29.13 per cent was deployed for operational purposes, including fuel use, gas lifting, and reinjection.

Supply to the power sector also improved significantly, with daily deliveries climbing 3.48 per cent month-on-month, from 833.86 million standard cubic feet per day (MMSCF/D) in June to 862.86 MMSCF/D in July, the highest level in three months.

Reiterating its gas-focused transition plan, NUPRC restated its commitment to ending routine flaring by 2030 and cutting methane emissions by 60 per cent by 2031.

Meanwhile, the latest World Bank Global Gas Flaring Tracker Report observed that Nigeria recorded a 12 per cent increase in total flaring volumes in 2024, ranking as the second-highest globally. It attributed the spike to facilities operated by the Nigerian National Petroleum Company Limited (NNPCL) and smaller operators with limited capacity for gas utilisation, which together were responsible for 60 per cent of flaring incidents and 75 per cent of the overall increase.